Heineken has higher than expected profit in the first half with strong results in Europe

BRUSSELS-Heineken, second largest brewer in the world, had a result higher than expected in the first half of 2017, with stronger profit growth in Europe thanks to the later Easter and the early onset of summer.
The operating profit of the company, without considering extraordinary items, grew 11,8% in the first half, to 1.81 billion euros, surpassing the average of 1.76 billion euros expected by seven analysts polled by Reuters.
The company, which produces the brands Heineken, Tiger and Sun, reported that the volumes, revenues and profits grew up on the same basis of comparison in all four regions of operation, with a weak first-quarter recovery in Africa and the Americas.
The increase in volumes in Ethiopia and South Africa more than offset a decline in Nigeria, while a strong market in Mexico secured the sales expansion in the Americas, with falls in Brazil, in Panama and, to a lesser extent in the United States.
In Viet Nam, one of the two main markets of Heineken, the continued steady performance. In Europe, where the profit growth was the strongest, the volumes were higher in France, Italy, Spain and Portugal, aided by a later Easter and the warmer climate.
On Monday, the company reiterated that it is expected revenue growth and profit in 2017.
"Although economic conditions are likely to remain volatile, our expectations for the year are unchanged," said Jean-Francois van Boxmeer in a statement.
Heineken kept the high goal of 0.4 percentage point in operating margin per year, although excluding the acquisition of the Brazilian operations of Japanese Kirin Brewery and American craft, as well as the planned purchase Lagunitas most pubs Punch Taverns in the United Kingdom.
But the company said that the acquisition in Brazil, consolidated as from 1 June, would dilute the 0.4 percentage point margin this year.